Johnson & Johnson to Pay $4B to Resolve Hip Implant Claims

[1]Sources tell Bloomberg that Johnson & Johnson (JNJ[2]) has negotiated a settlement to more than 7,500 separate lawsuits[3] over defective hip implants made by its DePuy division.

The consumer products giant has reportedly agreed to average payments of about $300,000 for each implant. The entire deal will cost JNJ in excess of $4 billion. The agreement does not feature a cap, meaning that more patients can seek compensation if their implants malfunction after the agreement is finalized.

Recalling the hip implants has cost JNJ about $993 million. The company faced years of prolonged legal battles in both state and federal courts over the defective devices.

JNJ is expected to submit the deal to a federal court in Ohio next week.

Earlier this month, JNJ agreed to a $2.2 billion settlement with federal regulators regarding civil and criminal charges over alleged improper marketing of its Risperdal drug[4].